Question 1

The Federal Arbitration Act promotes the arbitration of contract disputes whether the dispute involves federal or state law.

Accepted Answer

A) True 
 B)False

Question 2

Specific performance is awarded if the subject matter of the contract is unique.

Accepted Answer

A) True 
 B)False

Question 3

When does a minor breach occur?

Accepted Answer

A)  when a party rescinds the contract before actual work on the contract has commenced 
B)  when a party renders substantial performance of his or her contractual duties 
C)  when the party who is being offered goods or services rescinds the contract 
D)  when the party who is offering goods or services rescinds the contract 
A)  when a party rescinds the contract before actual work on the contract has commenced 
B)  when a party renders substantial performance of his or her contractual duties 
C)  when the party who is being offered goods or services rescinds the contract 
D)  when the party who is offering goods or services rescinds the contract

Question 4

Which of the following is used in case of a breach of contract that cannot be adequately compensated through a legal remedy?

Accepted Answer

A)  mitigation of damages 
B)  liquidation of damages 
C)  equitable remedies 
D)  tort remedies 
A)  mitigation of damages 
B)  liquidation of damages 
C)  equitable remedies 
D)  tort remedies

Question 5

Which of the following is true in a case of anticipatory breach?

Accepted Answer

A)  It occurs when a contracting party fails to inform the other party in advance about nonperformance of his or her contractual duties when due. 
B)  In case of anticipatory breach, nonbreaching party's obligations under the contract are not discharged. 
C)  The nonbreaching party must wait until performance is due to sue the breaching party. 
D)  Anticipatory breach can be derived from the conduct of the breaching party without being expressly stated by that party. 
A)  It occurs when a contracting party fails to inform the other party in advance about nonperformance of his or her contractual duties when due. 
B)  In case of anticipatory breach, nonbreaching party's obligations under the contract are not discharged. 
C)  The nonbreaching party must wait until performance is due to sue the breaching party. 
D)  Anticipatory breach can be derived from the conduct of the breaching party without being expressly stated by that party.

Question 6

Disclaimer of consequential damages is unlawful in most instances.

Accepted Answer

A) True 
 B)False

Question 7

If an employer breaches an employment contract, the employee owes a duty to mitigate damages by trying to find substitute employment.

Accepted Answer

A) True 
 B)False

Question 8

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Accepted Answer

A)  nominal 
B)  compensatory 
C)  liquidated 
D)  consequential 
A)  nominal 
B)  compensatory 
C)  liquidated 
D)  consequential

Question 9

A contractor cannot recover the profits he or she would have made on the contract if the owner breaches the construction contract before construction begins.

Accepted Answer

A) True 
 B)False

Question 10

________ is a situation in which a party to a contract renders performance exactly as required by the contract.

Accepted Answer

A)  Substantial performance 
B)  Strict performance 
C)  Anticipatory repudiation 
D)  Restitution 
A)  Substantial performance 
B)  Strict performance 
C)  Anticipatory repudiation 
D)  Restitution

Question 11

Mitigation of damages is a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract.

Accepted Answer

A) True 
 B)False

Question 12

Specific performance is not awarded in contracts for the sale of land.

Accepted Answer

A) True 
 B)False

Question 13

Distinguish minor breach from material breach.

Accepted Answer

A minor breach occurs when a party rende

Question 14

Andrew is employed as a chief financial officer of EasyMoney in New York City, for a salary of $200,000 per year on a three-year contract. His employer terminates Andrew with two years left on the contract. Andrew accepts employment as a financial analyst at a different firm that pays $150,000 per year. Which of the following hold true in this scenario?

Accepted Answer

A)  Andrew cannot take any legal action against his prior employer after accepting another job. 
B)  Andrew's prior employer must pay Andrew two years' worth of his previous salary. 
C)  Andrew can only sue to receive nominal damages. 
D)  Andrew can sue his prior employer and recover $100,000. 
A)  Andrew cannot take any legal action against his prior employer after accepting another job. 
B)  Andrew's prior employer must pay Andrew two years' worth of his previous salary. 
C)  Andrew can only sue to receive nominal damages. 
D)  Andrew can sue his prior employer and recover $100,000.

Question 15

Rudy was working as an applications developer in a software firm in San Jose. His employment contract was for three years at $100,000 a year. Two years into the contract, Rudy's employer fired him as a part of downsizing. Which of the following jobs could Rudy take in order to mitigate damages?

Accepted Answer

A)  Any job that offers $100,000 or more a year. 
B)  Another software applications developer job, irrespective of the salary. 
C)  A job in any software firm in any part of the country. 
D)  An applications developer job in San Jose for $100,000 a year or more. 
A)  Any job that offers $100,000 or more a year. 
B)  Another software applications developer job, irrespective of the salary. 
C)  A job in any software firm in any part of the country. 
D)  An applications developer job in San Jose for $100,000 a year or more.

Question 16

Consequential damages are unforeseeable damages.

Accepted Answer

A) True 
 B)False

Question 17

An award of ________ orders the breaching party to perform the acts promised in a contract.

Accepted Answer

A)  reformation 
B)  injunction 
C)  restitution 
D)  specific performance 
A)  reformation 
B)  injunction 
C)  restitution 
D)  specific performance

Question 18

Mary buys a new toaster for $500. The toaster's label bears a disclaimer stating that the manufacturer is not liable for consequential damages. One day, while Mary is using the toaster, it starts emitting sparks and the electrical wiring of the kitchen gets damaged. The electrician tells Mary that the toaster malfunctioned and that the cost of repairs would be $2,000. What monetary damages can Mary recover from the manufacturer of the toaster?

Accepted Answer

A)  $500 
B)  $2,500 
C)  $2,000 
D)  damages cannot be recovered 
A)  $500 
B)  $2,500 
C)  $2,000 
D)  damages cannot be recovered

Question 19

Material breach of a contract occurs when a party renders considerable performance of his or her contractual obligations.

Accepted Answer

A) True 
 B)False

Question 20

A famous news anchor signs a five-year contract to report the news for a certain national television news channel. Two years into the contract, another national television news channel, with full knowledge of the anchor's contract with the first news channel, offers the anchor twice the amount of money that she is currently making to breach her contract and sign and work for the second news channel. The news anchor breaches her contract and signs to work for the second channel. In this case, what tort action can the first news channel bring against the second news channel? In your answer, discuss the required elements of this tort and the type(s) of damages that would be available.

Accepted Answer

Here, the second news channel intentiona

Exam 16: Remedies for Breach of Traditional and E-Contracts

The Federal Arbitration Act promotes the arbitration of contract disputes whether the dispute involves federal or state law.

Specific performance is awarded if the subject matter of the contract is unique.

When does a minor breach occur?

Which of the following is used in case of a breach of contract that cannot be adequately compensated through a legal remedy?

Which of the following is true in a case of anticipatory breach?

Disclaimer of consequential damages is unlawful in most instances.

If an employer breaches an employment contract, the employee owes a duty to mitigate damages by trying to find substitute employment.

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

A contractor cannot recover the profits he or she would have made on the contract if the owner breaches the construction contract before construction begins.

________ is a situation in which a party to a contract renders performance exactly as required by the contract.

Mitigation of damages is a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract.

Specific performance is not awarded in contracts for the sale of land.

Distinguish minor breach from material breach.

Rudy was working as an applications developer in a software firm in San Jose. His employment contract was for three years at $100,000 a year. Two years into the contract, Rudy's employer fired him as a part of downsizing. Which of the following jobs could Rudy take in order to mitigate damages?

Consequential damages are unforeseeable damages.

An award of ________ orders the breaching party to perform the acts promised in a contract.

Material breach of a contract occurs when a party renders considerable performance of his or her contractual obligations.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial, Alternative, and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, Mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchise and Special Forms of Business

Investor Protection and E-Securities Transactions

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, Real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, Trusts, and Estates

Family Law

International and World Trade Law

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